A potential resolution to the Garda pay dispute is on the horizon after the Government tabled improved terms.

The outcome of negotiations between the Department of Justice and the Garda Representative Association will now be assessed by the GRA's executive committee before it decides whether to put the offer to its members.

A deal will only be accepted with the endorsement of rank and file gardai.

The development comes ahead of the result of a ballot of the GRA's 10,000 members on industrial action over the pay row.

If the Department of Justice offer is given the green light, the threat of action should be averted.

The dispute centred on a Government move to freeze incremental pay increases after the GRA failed to sign up to the Lansdowne Road public sector pay agreement. Terms offered to new recruits was a main sticking point.

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A spokesman for the Department of Justice said: "The department can confirm that agreement was reached between the GRA on Friday which, if approved by the members of the GRA, will bring the GRA within the terms of the Lansdowne Road Agreement.

"As part of the agreement the rent allowance of over 4,000 euro will be restored for recent recruits and for anyone considering joining An Garda Siochana in the current recruitment campaign."

In a statement, the GRA said: "Discussions have concluded with the department. A positional document from these discussions will be presented to the Central Executive Committee of the Garda Representative Association tomorrow for its consideration".